There are many best stocks for beginners with little money as small-cap companies offer their stocks at a very low price as low as in the range of 30-60 INR per share. These companies can show significant growth in a very short time. However, the risk factor is high in penny stocks. If you are a beginner with little money then these small investments can be a good start in the stock market. Let us know some of the best penny stocks in 2024.
Is Investing in Penny Stocks Risky?
Penny Stocks are risky as they are new emerging companies with very low market capitalization and liquidity. They can show sudden decline or price manipulation and result in losses. However, these stocks can sometimes give you good returns as they are emerging companies with some of the companies having promising opportunities.
As a beginner, you can invest in some of these low-priced stocks which can help you learn and get familiar with market dynamics and other concepts related to the stock market.
Top 10 Best Stocks For Beginners with Little Money in 2024
Investors are often in search of companies with significant growth prospects best stocks for beginners with little money. Some major best stocks for beginners are mentioned below.
1. Vikas Ecotech Ltd
The company Vikas Ecotech was founded in 1984 and is a specialist in chemicals and additive compounds. They contain various polymer compounds such as flame retardants, Thermoplastic Rubber (TPR), and Ethylene Vinyl Acetate (EVA) are some of the examples.
This company has shown a continuous growth trajectory in the last few years. The company has maintained a compound profit growth of over 13% over the decade. In the past three years, there has been a huge surge in growth up to 54%.
2. Indian Overseas Bank
It is one of the best penny stocks to invest in 2024. This bank provides various services such as Internet banking, Savings, retail banking, etc. It also involves exchange operations, managing investments, and loan offers. For the past five years, this bank has maintained a CAGR of 18.5%. The current stock value of an Indian overseas bank is 65.70 INR. Also, the P/E ratio is 49.71.
3. Comfort Intech Ltd
This company produces alcohol and offers many other services. It was founded in the year 1994. It sells textiles, fans, heaters, pumps, beverages, and Indian-made foreign goods. This company has shown remarkable growth with compound sales growth of 25% and compound profit growth of 10% over the past decade. Besides the normal fluctuations company has maintained an upward trajectory. It consists of attractive opportunities in the coming year.
4. Seacoast Shipping Services Ltd
Seacoast Shipping Services specializes in providing logistics solutions and offers services such as freight forwarding, phytosanitary, customs house clearing, and other logistic-related services. It was established in 2005 and ranks as one of the highest in handling agro-export commodities in containers from Mundra Port India.
The current stock value of Seacoast Shipping services remains near 4 INR. The P/E ratio is lower marked as 11.37 current. It exhibits a CAGR profit rate of 266% in the last five years and a robust ROE of 26.7% making it the best penny stock to invest in 2024.
5. Virgo Global Ltd
The Virgo Global Company provides IT software services such as manufacturing, trading, dealing, and maintenance of computer hardware and software systems. It also assembles data, processors, designs, and much more. It maintained a good return on equity of 32.5% for three years.
6. Indian Infotech & Software Ltd
This company provides business loans to individuals or businesses at a reasonable interest rate. It was founded in 1982 and it also buys and sell business shares. The company has shown significant growth with net profit growth of 13% over the last few decades. Despite a few fluctuations, it maintained a net profit margin in recent trends with a positive trajectory.
7. Swiss Military Consumer Goods Limited
They manufacture lifestyle products such as home appliances and men’s apparel such as ceiling fans, juicers, irons, choppers, egg boilers, innerwear, towels, etc. Within the last five years, the company has shown an impressive growth rate of 57.3% CAGR. It is also a good investing option in 2024. The current high and low margin for Swiss military consumer goods ranges in between 27.48 and 26.60.
8. Dish TV India
Dish India TV provides satellite and multichannel television services via dish network, mobile phone, or wireless. It provides a wide range of television channels nationwide. Despite of major challenges faced due to the online streaming platforms, this company has shown significant growth and also invested in new technologies to provide value to their customers. The current stock value of Dish TV India is approx 18 INR. It can be the best investment option for beginners in 2024.
9. Suzlon Energy Ltd
Suzlon Energy Ltd focuses mainly on sustainable development specializes in wind energy solutions and operates in more than 17 countries worldwide. The stock value of Suzlon Energy Ltd ranges between 42.65 and 41.10 currently with a P/E ratio of 76.85. Being a renewable penny stock it can be a promising penny stock investment in 2024.
10. Reliance Industries
Reliance is a major company in the stock market. It provides various services in the country. Reliance Industries’ main work is petrochemical production and refining, retail marketing, telecommunications, and others. It can be one of the best stocks for beginners in 2024.
Benefits of Investing in Penny Stocks
Some of the major benefits of investing in penny stocks are mentioned below.
- The most significant advantage of penny stock is its low investment cost. You can start investing with a very minimum price and acquire a good amount of shares in the company.
- Some of the penny stocks have good growth potential. Investing in these companies at an earlier stage can result in good returns. It can create good wealth in the future.
- It provides diversification which helps mitigate risks and enhance returns if invested for the long term.
- Volatility can have certain advantages also such as it presents traders to gain profit from short-term price movements. Investors with strategic buying and selling use the volatility to gain profit.
- Penny stocks provide a valuable learning experience especially when you are new to stock trading. You can learn more about the market dynamics, industry trends, financial statements, and more.
- They may also provide quick profits as they are more volatile and can show rapid price movements. Traders who can time these flows can get benefits from short-term trading opportunities too.
Disadvantages of Investing in Penny Stocks
There are certain disadvantages of investing in low-price stocks. Some of them are mentioned below.
- The risk factors in penny stocks are very high and due to limited liquidity and market capitalization price manipulation can be highly unpredictable and can also result in sudden declines.
- There is not much information about these companies as compared to well-established companies. This lack of information can pose challenges to investors in collecting information and asses the true value of stock.
- In penny stocks, limited liquidity can be a major challenge in implementing trades at desired prices.
- It consists of very low market capitalization and liquidity which creates hurdles in buying and selling of stocks.
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Best Stocks For Beginners FAQs
Is it risky to invest in penny stocks?
Penny stocks are risky and are not always considered by investors because of their low liquidity and market capitalizations. However, for beginners, it can provide a learning experience.
How do I choose the Best stocks for beginners?
Before selecting a stock you must consider the following point in mind.
Know your financial goals.
Must know about the company you are planning to invest.
Determine the company’s performance and whether it can provide profits.
Buy stocks after proper research while keeping in mind the risk factors.
Can I buy a share for Rs 100?
Yes, many stocks are less than 100 INR where you can invest easily. However, these companies are generally new in the stock market hence proper research before investing.
Should a beginner invest in stocks?
Yes you can start investing in stocks as a beginner to gain high returns over a long time. Keep investing and you will see your net profit multiplied with time. However, investing in stocks is risky, and one must exhibit proper research before moving on with investment.
